GCAP and Economic Partnership Agreements (EPAs)

EU/ ACP Agreements

By the time 2007 draws close, African Caribbean and Pacific (ACP) governments will have come under intense pressure by the European Union (EU) to conclude a series of Economic Partnership Agreements (EPAs).

EPAs are reciprocal Harmful Free Trade Agreements that the EU is negotiating on bilateral basis with African, Caribbean, and Pacific (ACP) countries.  EPAs agreements establish unfair trade relationships that are not suitable for sustainable development in already underdeveloped countries.

Such EPAs will open up ACP markets to devastating competition from EU exports. This will lead to increased social inequality and poverty through the destruction of local, industries, and small-scale agriculture, damaging employment and livelihoods. The terms set within the EPAs will sharply reduce the necessary democratic policy space for ACP countries to regulate and to design their own national and regional integration policies to meet their development goals and needs. EPAs will lead to increased social inequality and poverty.

In the face of the formal deadline of 31 December 2007, the EU is putting tremendous pressure on the ACP countries to sign EPAs by the end of the year, including threats to reduce development aid and increase tariffs on their exports into the EU market.

We condemn the use of such bullying tactics against many of the world’s poorest countries. We strongly oppose the EU’s demand for reciprocal trade relations between countries of such unequal economic strength.

Asia Trade Agreements

Agreements of this kind envision full liberalization not only in the goods sector, but in services and investments as well, thereby posing greater threats to livelihoods and food security in the developing countries. In Asia, Japan has been leading the drive towards greater economic integration through bilateral EPAs. It has already concluded an EPA with Singapore in 2002.The Japan-Philippines EPA is due for ratification by the Philippine Senate.  Other EPAs with Thailand, Indonesia and Malaysia are in the pipeline. These EPAs contain new issues or World Trade Organisation +plus provisions which are patently skewed in favour of Japan.  Developing countries should slow down the pace of negotiations to ensure that the interests of vulnerable sectors including agriculture and small or medium-scale enterprises are taken into account and protected.

GCAP is calling for:

• An end to unfair bilateral trade deals.
• EU repeal of the EPA strategy - it does not give African countries a chance to make any gains in current negotiations. This is because African governments are negotiating through regional blocs such as the ECOWAS, EAC and SADC.  These poor and weak blocs are negotiating with the EU which has a membership of 25 with a combined GDP of about $13.300 billion.
• African governments to block the EPAs and to focus should be on how to improve regional integration and economies.
• Not to impose trade liberalisations and other ‘trade-related’ terms upon the ACP countries
• Refrain from putting pressure on ACP countries to sign EPAs this year
• Offer non-reciprocal alternatives and to ensure that exports to the EU from ACP countries will not be interrupted

See also : Africa-EU Lisbon Summit - December 8-10.